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Discussion Starter · #1 ·
Hey guys,

I'm considering offering my car for trade on a 57 Bel Air 2 door hardtop. I've never traded a car with anyone before and was wondering if anyone has actually done this and how did they explain it to the DMV? In NJ, sometimes we'd say it was a gift or something and no taxes were paid. But here in North Cack-a-lacky I don't know how it works. I called the local DMV here and you could actually hear the person on the other end of the phone getting more stupid as she processed the question in her 486 computer brain.:rolleyes: Anyway, any thoughts?:confused:
I have a monitary number of what I would get for my car, and figure if I find someone who has an equal value 57 that would want to trade, we could swap cars. If anyone has any info on the documentation required, I'm all ears. Thanks guys.

Cheers
 

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Yes I have. I traded a 95 Jeep Wrangler straight across for my 56 Bel Air. DMV wasn't even an issue. I don't even remember if there was sales tax involved, because it was a straight trade.
 

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In reality when you swap or trade product, you are getting the value that the thing you take is worth....in other words, you are getting money from the other guy and turning around and giving it back to him for his car. The DMV might think of this just so they can get sales tax. If you both agree that the value of your cars is zero or some nominal amount, then you're okay. If you put, as we do here in Florida, the sales amount on the title when you sign the title and give it to the other guy, you should put the actual amount you got for the car, in this case the value of the car you gave to the other guy. If you both put zero as the sales price I'd guess that the DMV will never know any better.
 

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Here in ole Kaintuck they frown on them low low low purchase prices. I haven't tried that in more years than I care to recall, but I think I would try to use a value that at least didn't raise eyebrows.
 

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In Nebraska,we would pay sales tax only on the amount above the value of the trade.....If you traded and paid $500 in addition....they'd tax the $500.You've already paid sales tax on the car you currently own.Most states probably vary some
 

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I was just looking at the NC State Statutes and found that sales tax is paid on the amount of the sale of the car minus the trade-in value of any car taken in trade. So, if you sell your car for the same price as the trade-in, then you pay tax on nothing, or so it seems to me.

§ 105?187.3. Rate of tax.
(a) Amount. – The rate of the use tax imposed by this Article is three percent (3%) of the retail value of a motor vehicle for which a certificate of title is issued. The tax is payable as provided in G.S. 105?187.4. The maximum tax is one thousand dollars ($1,000) for each certificate of title issued for a Class A or Class B motor vehicle that is a commercial motor vehicle, as defined in G.S. 20?4.01. The maximum tax is one thousand five hundred dollars ($1,500) for each certificate of title issued for a recreational vehicle that is not subject to the one thousand dollar ($1,000) maximum tax.
(b) Retail Value. – The retail value of a motor vehicle for which a certificate of title is issued because of a sale of the motor vehicle by a retailer is the sales price of the motor vehicle, including all accessories attached to the vehicle when it is delivered to the purchaser, less the amount of any allowance given by the retailer for a motor vehicle taken in trade as a full or partial payment for the purchased motor vehicle. The retail value of a motor vehicle for which a certificate of title is issued because of a sale of the motor vehicle by a seller who is not a retailer is the market value of the vehicle, less the amount of any allowance given by the seller for a motor vehicle taken in trade as a full or partial payment for the purchased motor vehicle. A transaction in which two parties exchange motor vehicles is considered a sale regardless of whether either party gives additional consideration as part of the transaction. The retail value of a motor vehicle for which a certificate of title is issued because of a reason other than the sale of the motor vehicle is the market value of the vehicle. The market value of a vehicle is presumed to be the value of the vehicle set in a schedule of values adopted by the Commissioner.
 

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Discussion Starter · #8 ·
Thanks for all the replies. We used to do the same thing in NJ many moons ago but they started getting wise to it. I since left NJ so wasn't sure if something like writing $0 on a title would send up flags. There's no purchase price designation on NC titles as they want a bill of sale.
Mike, that's perfect info. I almost figured as much that if you trade in something for equal value you shouldn't pay tax. I may have found a 57 project to buy anyway, so I may not have to deal with the trade issues but it's all good to know stuf in case it may happen. Thanks guys.

Cheers
 

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Just have the bill of sale show the sales price AND the trade-in value with the result being zero and it looks like you'll be okay so long as you value both cars reasonably.
 

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I live in Cameron N.C. A couple of years ago, I traded pick-ups with a friend of mine. All we did was walk into the Sanford DMV to sign and notarize both titles. The only question asked was if we wanted plates today.
 

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I'm in NC and am familiar with this deal....They do NOT care what you say it's worth...They decide what it's worth then charge you a 3.5 percent "use tax" Prepare to get burned on this deal....They have this twisted perverted idea that all old cars are worth big bucks...Then after that you will get the annual tax bill as a penalty for owning it...I love NC but I HATE their DMV laws....
 

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Discussion Starter · #13 ·
Yeah, isn't that what they call the "highway tax"? I think I'll just hang onto the Chevelle and buy a tri-five. Two classics in the garage? Man, I can only dream!

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I'm jealous just thinking about you having both cars at once

Edit: I just noticed that this is my 1200th post -- and all I said was that I'm jealous! Boy, I need to get a life! :)
 
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